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Competing Priorities for Infrastructure Stimulus

Transportation Trade CorridorsValuing Green Benefits

Megaproject Pipeline

July/August 2020

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POLITICS

8 Shaping Infrastructure Stimulus Political leaders from a decade ago weigh in on the right way to invest infrastructure stimulus dollars. By Andrew Macklin

11 From the Ground Up Infrastructure development has a vital role to play in the Ontario’s revival post-COVID-19. By Andrew Macklin

MEGAPROJECTS

14 Infrastructure Megaprojects Pipeline Report ReNew Canada’s first-ever analysis of the pipeline of infrastructure megaprojects soon to be developed. By Andrew Macklin

TRANSPORTATION

18 Trade CorridorsQuebec targets transportation corridors to other provinces as an area of investment that will promote future economic growth. By Carroll McCormick

PARTNERSHIPS

20 The North is WaitingAs Canada looks to spend billions in infrastructure development, the north looks to attract investment to support regional prosperity. By Barbara Fox

24 Safeguarding P3s A closer look at the structure of P3 contracts and how they protect the parties involved during a disruptive event. By Eme Housser and Suneil Ramesh

HEALTH CARE

28 Housing for Health Looking at how we adjust the way we build housing to better support the health care needs of an aging population.

By Michael Fenn

GREEN INFRASTRUCTURE

30 Designed for ResilienceUnderstanding how resilient infrastructure does more than just protect communities from the impacts of climate change. By Ryan Brain

32 Building the Case How private and public land owners can appreciate the financial value of building natural infrastructure on their property. By Alyssa Kelly and Eric Meliton

36 Valuing Green BenefitsEvaluating the economic, social, and environmental value of green infrastructure assets. By Kelsey Beveridge

FINANCE

38 Shaping the GMF How the results of 20 years of the Green Municipal Fund have reshaped Canadian communities. By Brock Carlton

TOP100 PROJECTS

40 Top100 Projects Update Ramping up at Site C, field work for Kicking Horse Canyon Project

DEPARTMENTS

4 Editor’s NoteAndrew Macklin on how we should prioritize infrastructure stimulus funding in the months ahead.

5 Front Halton Region Courthouse, Asset Management Funding

22 Panorama At the End of the Tunnel

41 People & Events Appointments, announcements, company news, and event reports.

42 Closing Shot Todd Latham says it’s time to end short-term handouts and find long-term solutions to fund expanding municipal budgets.

JULY/AUGUST 2020

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Contents

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July/August 2020 ReNew Canada 3renewcanada.net


Editor’s Note

It’s time for the federal government to dole out billions of dollars in infrastructure stimulus funding,

and it seems just about everyone in the industry has an opinion on how the dollars should be invested.

Many of the voices reaching for platforms to spread their message are the ones you would expect: non-government organizations representing part of the infrastructure sector, pleading their case about why theirs is the most worthy of a funding boost. And the cases being made are strong: transportation investments move goods to market and get people home quicker, transit provides low-carbon commuting and helps improve access to employment, health care investments improve capacity and resources to address disruptive events and improves quality of life. And the list goes on.

All of these stakeholders make viable arguments. It’s very difficult to suggest otherwise. So how do we cut through the clutter to understand how the government should be directing its multi-billion-dollar investment? Because that is the challenge sitting squarely in front of Minister of Infrastructure and Communities Catherine McKenna.

We’ve spent the past three months or so trying to figure it out at ReNew Canada. First, we engaged in the discussion with the Construction and Design Alliance of Ontario (CDAO) to establish why infrastructure is so important to economic stimulus (article on page 11). We then engaged three senior politicians from a decade ago talk about the stimulus that followed the 2008 recession to determine priorities for moving forward (article on page 8). And before, during, and after that time,

we engaged thousands of industry stakeholders to get feedback and try to bring it all together for the powers-that-be to digest.

What did we conclude after all of that engagement? Well, it’s just not that simple. Any of it.

We certainly know that building infrastructure is the right thing to do. Dollars get spent in the local community and stay there, and the benefactors of what’s built are those who will reside in the communities for decades to come. After that, things get a little murky.

The conundrum lies in the priorities. Whose priorities take precedence? What are those priorities? New assets or asset rehabilitation? Economic, social, or environmental priorities? What are the opportunities to innovate? What is the business case for the investment? Build it and they will come, or must the investment have immediate ROI? How much of the asset cost will you cover? What procurement model will you use? What about operations and maintenance funding?

The endless questions, many of the same ones that you encounter, are standing between the Minister and the ability to start writing cheques.

We are at a critical time, and the decisions that follow will determine the quality of assets that many communities will be saddled with for decades to come.

What should be our top priority? No answer will please everyone. But if you communicate with the stakeholders who will be impacted by the decision, you might just get an answer that everyone can live with.

Andrew Macklin is the managing editor of ReNew Canada.

[email protected]

WHAT SHOULD BE OUR PRIORITY?

By Andrew Macklin

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July/August 2020 Volume 18 Number 4

CONTRIBUTORS Kelsey Beveridge, Ryan Brain, Brock Carlton, Michael Fenn, Barbara Fox, Eme Housser, Alyssa Kelly, Carroll McCormick, Eric Meliton, Suneil Ramesh

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Top15 in 15

Fifteen projects that have changed the Canadian

landscape.

An Evolving Landscape

Readers share their thoughts

on the industry’s evolution.

N.S. FINALIZES HIGHWAY 104 CONTRACT

ABOUT THE COVER

NEXT ISSUE: SEPTEMBER/OCTOBERTHE 15th ANNIVERSARY ISSUE

Putting the right pieces in place for meaningful infrastructure stimulus is no easy task, but it’s one the federal government must accomplish.

Learn more on page 8.

A consortium with a strong Nova Scotia presence has been awarded the contract to design, build, finance, operate, and maintain the 38-kilometre twinned section of Highway 104. Dexter Nova Alliance, led by local contractors Dexter Construction and Nova Construction, with BBGI as an equity partner, outbid two other companies shortlisted for the $717.9 million project.

Construction will start in June and will be completed no later than the end of 2023.

The Highway 104 project consists of construction of a twinned highway beginning east of New Glasgow, near Exit 27 at Sutherlands River, and running east for a distance of 38 kilometres.

The project includes 28 kilometres of new two-lane twinned highway and 10 kilometres of new four- lane twinned highway. There are two new interchanges and about 24 new bridges. Dexter Nova Alliance will also upgrade the existing section of highway, which will include repaving the entire section of old road and replace seven existing bridges.

The proponent will take over ongoing operating and maintenance responsibilities for the twinned portion of the highway and another 25 kilometres of existing highway. That includes snow removal, pothole repair, and any repaving that may be required over the 20-year agreement

The project cost of $717.9 million includes $364.3 million for construction and $196.4 million for ongoing operations and maintenance, and a major upgrade of the existing stretch of highway during the 20-year operating period. Insurance, professional fees, financing, and other costs make up the remainder of the total.

Addressing Market Capacity

How do we ensure the next 15

years are just as prosperous?

Front

CONSTRUCTION RESPONDED STRONG TO COVID-19 PANDEMIC

Richard Lyall is the president of the Residential Construction Council of Ontario (RESCON).

Construction employers, like the rest of the world, did not fully understand the impact of COVID-19 in early March, but they blazed a trail for other employers,

workers and workplaces to follow in terms of health and safety. We therefore disagree with Andrew Macklin’s editorial in

the last issue of ReNew Canada that was critical of the way the industry responded to the pandemic.

COVID-19, as we all know, hit quickly and unexpectedly. It caused chaos around the world and touched every industry. We are still feeling the effects and that is likely to continue for some time yet.

Construction in our province was not immune from the fallout and, in the early days of the pandemic, a lot of work was conducted behind the scenes to ensure workers remained safe on the job.

RESCON and the industry were quick to act. We instantly shifted gears and rose to the challenge, leading the development and implementation of COVID-specific protocols for the residential industry.

We worked with other associations as well as labour-management groups to create a document that was distributed to employers, outlining what they needed to know about best practices and where to find resources. It laid the groundwork for creation of MOL COVID-19 construction guidelines. We were the first sector to have specific health and safety guidelines, something which benefited countless workplaces.

In short order, we used the time-tested health and safety approach of identifying hazards and working to eliminate or mitigate risk. We put in place hazard-specific solutions, including but not limited to increased sanitization, social and physical distancing, and introduced staggered shifts and increased use of personal protective equipment.

RESCON, in concert with our labour partners and others like the IHSA, CDAO, CEC and other construction associations, made it a priority to keep workers safe. We devoted an area on our website specifically to COVID and communicated via social media channels like Twitter and in e-newsletters sent to our members.

Because of our efforts, workers in the residential sector were able to stay safe and continue on the job during the shutdown. At time of writing, MOL inspection numbers showed zero WSIB COVID-19 claims in construction which is proof that our approach was effective in both form and function.

Instead of criticism, then, the construction industry should be praised for the responsible role it has played during this pandemic. Premier Ford stated at a press conference that the construction industry did “an incredible job” during this crisis and he is now looking to us to set the gold standard.

The industry is already looking at ways to improve its best practices and pandemic plans and by advocating for the 3Ts—better tracking, testing, and tracing—we hope to avoid problems if a second wave hits.



Front

long after the pandemic is over. The needs of the justice sector have changed and there is broad consensus we cannot go back to the way things were done before the public health emergency.

That is why our government has made the decision not to proceed with the Halton Region Consolidated Courthouse construction project, which was in the procurement phase before the COVID-19 outbreak. This investment will be repurposed to transform and update Ontario’s severely antiquated justice system, and address immediate infrastructure needs at the courthouses in Milton and Burlington. Shifting traditional investments toward innovation and new technology will move more services online and position Ontario at the forefront of building the modern justice system of the future.”

Infrastructure Ontario (IO) has notified the proponent teams who were bidding on the project. The proponent teams will receive compensation for their efforts, as outlined in the RFP. IO will be meeting with teams in the coming days to discuss next steps.

The Government of Ontario has announced the cancellation of the procurement of the Halton Region Consolidated Courthouse project.

According to the Winter 2020 P3 Market Update, the project was expected to reach financial close last month. The design, build, finance, and maintain project began procurement in February of 2018. The estimated total capital cost of the project was expected to be in the $200-$499 million range.

Attorney General Doug Downey released a statement regarding the need to invest in innovative ways to modernize the justice system, and included the announcement of the halting of procurement of the project as part of his statement:

“Experience gained during COVID-19 underscores the urgent need to invest in technology, modernize processes, and expand access to justice across the province, including in rural and remote regions. Our justice partners have joined us in acknowledging we must continue to press forward boldly toward a more accessible, responsive, and resilient system that will continue to evolve

Next Phase of Asset Management Funding Available

The Government of Canada and the Federation of Canadian Municipalities have launched the next phase of funding to help communities improve their asset management practices—enabling them to use sound and reliable data to make more informed decisions about key roads, water systems, buildings, and other infrastructure.

“As we continue to face the greatest public health and economic crises of our time, smart investments in infrastructure will play a vital role in addressing the needs of communities and reviving local economies,” said Catherine McKenna, Minister of Infrastructure and Communities. “The Government of Canada is working with the Federation of Canadian Municipalities to

help communities strategically plan, build, and maintain their infrastructure to improve quality of life, grow the local economy, and create jobs. By working together, sharing information, collecting real data and discovering what works, we will deliver the best results for Canadians and build more resilient and sustainable communities for our children and grandchildren.”

The funding is available through a renewed federal investment in FCM’s Municipal Asset Management Program (MAMP), first announced in last year’s federal budget. Since 2017, MAMP has funded more than 585 local asset management projects in communities across Canada. It’s proven to be so popular and effective that Budget 2019 committed an

Halton Region Consolidated Courthouse Project Cancelled

additional $60 million to the program.Doubling down on this federal-municipal

partnership will enable funding support for hundreds more municipal projects, mostly in smaller and rural communities. It will also support projects from Indigenous communities (with shared service agreements) and communities that will work together to share knowledge or resources. It shows what’s possible when federal and local governments work together to deliver for Canadians.

“Municipalities are Canada’s builders. We are responsible for 60 percent of the roads, bridges and water systems that support Canada’s economy and quality of life,” said Bill Karsten, FCM President. “Ensuring local leaders have the right tools to make sound asset management decisions is one of the ways we can be ready to drive Canada’s economic recovery when the time comes. Today’s announcement shows that when federal and local orders of government work together, we build better lives for Canadians.”

MAMP supports local government initiatives ranging from collecting asset management data and analyzing needs to developing policies and training staff to implement them.

The Municipal Asset Management Program is designed to help Canadian municipalities make informed infrastructure investment decisions based on reliable data and sound asset management practices.



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Politics

2009, and the Honourable Christy Clark, who became leader of the BC Liberal Party and, in turn, the Premier of British Columbia in February 2011. Genevieve Young, the president and chief operating office at GPA, provided an analysis of the current state of affairs to open our conversation.

Starting the process

The clear first task for the federal government is to set its priorities. What sectors will you focus on, who will drive the list of project priorities, and what criteria will the project owners be forced to adhere to?

Baird, now a senior advisor at Bennett Jones LLP in Toronto, suggested that because of federal Minister of Infrastructure and Communities Catherine McKenna’s work in her previous role as Minister of Environment and Climate Change, green infrastructure will likely be high on her priority list. He suggested projects like wastewater treatment, and projects that reduce Canada’s carbon footprint, would be among those likely to be high on the list of project priorities.

Those priorities, once they have been established, need to be communicated to

Following the 2008 recession, the federal government dedicated billions of dollars to infrastructure stimulus,

projects that helped improve the quality of life in communities and helped rebuild the Canadian economy. Fast forward more than a decade, and the federal government finds itself in the same situation, looking to provide infrastructure stimulus dollars to again get money flowing into communities.

Can we expect to see the same sort of stimulus program from the federal Liberal government that we saw from the federal Conservative government in 2008? Or are there new ideas, considerations, and factors at play that could shape the stimulus in a completely different way?

To answer that question, ReNew Canada partnered with Global Public Affairs (GPA) for an online conversation that brought together three senior political leaders from a decade ago to discuss what could, or should, the federal infrastructure stimulus program look like in 2020: the Honourable John Baird, who was the federal Minister of Transport in 2009, the Honourable Darrell Dexter, who became Premier of Nova Scotia in June

the other levels of government. Dexter, who is now a vice president at GPA, suggested that it would be most beneficial to get the province involved early in the process to discuss program design, noting that “the federal government will have somewhat different priorities than the provinces.”

Baird agreed that cooperation among all levels of government is a must. “You genuinely need a partnership. You need to have the levels of government partnering because you can make your dollars go a lot further.”

The impact of the investment

Setting the priorities involves appreciating the focus of the investment; what is the end goal of the stimulus you are providing?

“Is Canada going to focus on building infrastructure where you build it, the jobs are done, and the workers move on, or are you going to focus on building infrastructure that expands Canada’s economic capacity in the long-term,” asked Clark.

In Atlantic Canada, Dexter noted that projects to expand economic capacity involves looking at what is preventing the region from being Canada’s gateway to Europe. While he

How the federal government could, or should, focus new investments.By Andrew Macklin

SHAPING INFRASTRUCTURE STIMULUS

In the west, improving infrastructure like rail corridors helps get goods to market faster, including the growing trade opportunities in the Asia-Pacific markets.



by shovel-ready. For starters, considerable work has been done to establish municipal asset management plans, plans that help communities understand the state of their assets and make infrastructure investments through evidence-based decision-making. And with infrastructure deficits growing despite record levels of investment, an argument can be made that the most shovel-ready infrastructure projects are ones involving asset maintenance and repair.

“We certainly would have liked the ability to have used maintenance and repair contracts as part of the infrastructure program,” said Dexter. “[…] There are a lot of infrastructure projects out there from past investments that are still serviceable and a part of the fabric of those communities. In my mind, they should be included in the program.”

recognized that the Port of Montreal competes with the Port of Halifax, transportation infrastructure in the east is key to creating a strong gateway at the entry point to the country’s east coast. Those projects create regional benefit, not just local benefit where the asset is actually constructed.

Clark said the same for the west, where the expansion of transportation infrastructure that allows Canadian products to get to market quicker will have the greatest economic impact.

“Inter-provincial roads are important because they create an opportunity for export. […] Where are the Canadian products, manufactured and unmanufactured, that can return foreign dollars to the country?”

She noted that large-scale projects such as ports, rail corridors, and pipelines are important, as is addressing the bottlenecks in the national highway system that slow down goods from getting to market, both between provinces and with other countries.

Baird mentioned that it is also important to ensure that there is discipline in these types of investments, ensuring that a solid business case for such investment is present. For example, the two largest ports on the west coast of Canada, Vancouver and Prince Rupert, are continuing to see increased demand, and are key to continuing to open up the Asia-Pacific Gateway. However, that same discipline may prevent a deep-water port from being built in a location like Canada’s North, where the case for the port may be more built on the idea that such an investment will attract imports and exports versus meeting a current demand.

There will still likely be a community component to the stimulus package, but what type of infrastructure that is could be less its community impact and more about…

How do we define shovel-ready?

In a mid-April interview with The Globe

and Mail, Minister McKenna stated that the federal government would look for shovel-ready projects for the infrastructure stimulus plan. This was the same approach taken by the Harper government following the 2008 recession.

But a lot has changed since 2008, change that could significantly adjust what is meant

Politics

“ The first thing you’ve got to do is cut the red tape to

make things happen quickly. That’s not doing regulation

more efficiently, it’s less regulation.” — John Baird

Dexter noted that Atlantic Canada should be the

gateway to Europe, and that investments in trade

infrastructure has regional impacts, not just an impact

in the community where the asset has been built.

There is also the question of the impact of Bill C-69, and whether that will hamper the number of projects that can be classified as shovel-ready based on its original definition. The planning phase and impact assessments, and how long these processes take, could make it difficult for many projects to qualify for federal stimulus.

SURVEY:INFRASTRUCTURE

STIMULUS

What sector should be the primary focus of infrastructure stimulus?• Transportation 35.1%• Transit 19.1%• Water 17.0%• Health Care 10.5%• Other 18.1%

Should asset maintenance and repair be considered ‘shovel-ready’ projects?• Yes 92.2%• No 7.8%

Which of these is the biggest challenge to putting infrastructure stimulus dollars to work?• Procurement 45.2%• Deciding what to

invest in 35.5%• Environmental

assessment 15.1%• Permitting 2.2%• Skilled labour 2.2%



Politics

jurisdictions across Canada. Without a simplified process, or a greater amount of resources dedicated to streamlining certain processes, projects could take months or years before the first shovels hit the ground.

Politics also has to be shoved aside for anything to get accomplished. All three noted that any political disagreements between the provinces and the federal government cannot get in the way of meaningful infrastructure stimulus investment. Baird noted that, in the case of both British Columbia and Nova

“I can’t see how Minister McKenna, given her ideological bent on things, is going to be able to get anything shovel-ready,” Clark stated, referring to the new standard set with the introduction of the Bill. “Shovel-ready has become such a limited category.”

Barriers to success

Beyond the potential complications caused by the impacts of Bill C-69, there are other issues that could see stimulus funding fail in its desired impact.

original stimulus funding, one that took the project owner’s word that the job would be done by the assigned date but after that “the taps are turned off.” Knowing that delays and shortfalls will not be reimbursed with additional federal monies provides discipline and rigour for the project planning and execution.

What’s next?

These are no easy decisions ahead of the federal government. As Baird pointed out, the amount of debt the federal government will go in as a result of the COVID-19 pandemic is significant. The billions that are about to be invested in infrastructure need to be targeted well, providing real economic opportunities for the communities impacted.

How that investment is spent will depend on the federal government’s investment priorities, the discussions they have with the individual provinces, how they address the barriers before them, and how they define the scope of the investments.

Get that right and we’re likely to see billions of dollars spent on projects that improve the country’s economy and the quality of life in our communities.


“ We certainly would have liked the ability to have

used maintenance and repair contracts as part

of the infrastructure program.” — Darrell Dexter

As the former Minister of Environment and Climate Change turned Minister

of Infrastructure and Communities, it is expected that Catherine McKenna

will have a green lens when looking at infrastructure stimulus investments.

Scotia, he ended up picking up the phone to talk to the premiers in order to work out any differences in order to clear the way for the incoming investments.

He also pointed to project execution as an area that can hamper the desired impact for infrastructure stimulus. Without a plan in place for addressing cost overruns or project delays, the federal government could put itself in a position where it is on the hook for additional funds. He pointed to a clause that his government put in the

“The first thing you’ve got to do is cut the red tape to make things happen quickly,” said Baird. “That’s not doing regulation more efficiently, it’s less regulation. One project, one environmental assessment is good enough. You don’t need to do a federal environmental assessment when you are replacing the roof of a community centre in small town Ontario.”

Certainly, demands for complex processes can get in the way, as it has certain approvals and environmental regimes in different



Politics

can best impact communities, it’s important to appreciate the current and forthcoming economic climate.

According to John O’Grady, co-founder of Prism Economics and Analysis, the recovery ahead will not be quick. Instead, the economic downturn caused by the COVID-19 pandemic will be like nothing we have ever seen.

There are a few factors contributing to this. First, he cited the uptick in protectionism measures put in place in multiple key global markets as a reason why this will not be an export-led recovery, which could have sped up the pace for an economic rebound in Canada. He also noted the significant fragility in the supply chain, something witnessed during the crisis’ early days in regards to personal protective equipment and materials for an increase in handwashing.

The case for significant investment in infrastructure in strong. Infrastructure dollars enter a

community and, for the most part, stay there, bolstering the local economy. There is a litany of businesses that benefit from the presence of construction projects, including restaurants and bars, fuelling stations, retail outlets, and more. And the lasting, long-term impact of the asset within the community, used by thousands or even millions of citizens over its lifespan, cannot be understated.

In Ontario, the Ford Government has made a clear commitment to infrastructure development as part of its economic recovery plan but how significant that invest will be, and how it will be targeted, is still being evaluated. ReNew Canada, in partnership with the Construction and Design Alliance of Ontario, partnered to hold a discussion to evaluate the opportunity that the province has in front of it—the chance to make a significant, timely investment that will provide a strong return on investment and create a lasting, positive impact on communities.

A challenging economic climate

Before analyzing how the stimulus package

And while some of that manufacturing capacity has since been established within our own borders, there is still the potential threat of projects being interrupted due to a lack of availability of certain building supplies.

The result is the need for a real stimulus plan, one that reboots the economy with investment from within our own borders,

rather than relying on an export-driven solution or significant investment from the private sector.

Lessons from 2009

Thankfully, an infrastructure-based stimulus has been executed before, and the valuable lessons learned from funding initiatives in 2009 have provided a guideline for what should, and shouldn’t, be done this time around.

FROM THE GROUND UPHow infrastructure development can help build Ontario’s future. By Andrew Macklin

Investing in healthy communities, ones that pedestrians can safely move around in, encourages investment in the local economy.

“ We have to have a lot more flexibility and recognition

that we are in very uncertain times, and that we can’t

do business as usual.” — Andy Manahan



Politics

Andy Manahan, executive director of the Residential and Civil Construction Association of Ontario and vice-chair of CDAO, discussed one particular roadblock that stunted funding in 2009, and must be removed to get money flowing effectively in 2020.

“Municipalities could not put forward projects already on the books. It had to be a new project. This, of course, created a dilemma in that municipalities would not apply for funding for knowing that the Municipal Class EA process might take a year or two, or even longer,” said Manahan. “Originally, the feds set a limit on the program of March 31, 2011 which aligned with the government year-end. Following lobbying by municipalities and other construction stakeholders, an extension was granted to Oct. 31, 2011 to allow for construction over the prime summer

stimulus funding are not just shovel-ready, but also shovel-worthy.

An opportunity for innovation

For the stimulus funding to have a real impact, one that looks to the long-term benefits of what is being built, the panellists agreed that the investment has to go beyond the traditional thinking. Instead, it has to look towards the demands for the asset at the end of its lifecycle, not just its beginning.

“The economic recovery needs to be transformative,” said Manahan, suggesting that the need for reduced human contact during the pandemic further makes the case for some industry processes to move to a digital format, such as e-permitting.

Claire Hicks, program manager for WSP’s Future Ready program, suggested that the key to providing an effective investment

The key to providing an effective investment that

will ultimately be transformative is to provide

flexibility within the infrastructure that is built.

The physical distancing requirements during the pandemic means work is getting done slower, something contractors must be protected against when stimulus funding contracts are awarded.

What has had the biggest negative impact on your business during the pandemic?

• Supply chain delays 48.0%

• Loss of contracts 36.0%

• Increased health and safety costs 8.0%

• Shortage of workers 8.0%

What type of innovation deserves the greatest consideration for stimulus investment?

• Connectivity 56.5%

• Disaster resilience 26.1%

• Energy efficiency 8.7%

• Data collection and analysis 8.7%

season. While there were good projects, there were many in the category of lighting in a public park or a gazebo. Not exactly high ROI projects which were intended to provide stimulus.”

Manahan went on to suggest that the development of municipal asset management plans should assist with this process, ensuring that the projects that receive

that will ultimately be transformative is to provide flexibility within the infrastructure that is built. She referred to the concept as ‘conscious cities’, creating communities that are aware of its users. Creating the conscious city including elements such as healthy, walkable streets for all types of pedestrian traffic, investing in digital infrastructure, and transit systems that operate based on

INFRASTRUCTURE STIMULUS

CONSIDERATIONS



measures that will prevent a second wave of coronavirus, or some other type of disruptive event, from penalizing the construction industry.

“We have asked the Province for a legislated provision for accommodation (both with regard to time and compensation) to be inserted into all construction and professional services contracts where the effects of COVID-19 might result in failure to perform or cause delay, including workforce and supply chain considerations. This provision could be applied under the Emergency Management and Civil Protection Act,” said Perruzza.

“Without these fair and reasonable contract accommodation provisions, the broader construction industry faces double jeopardy. Notwithstanding the present and lingering effects of an unprecedented pandemic, we will be required to mobilize or carry on this work, while potentially faced with contractual penalties, liquidated damages and the ostensible need to mitigate where operational mitigation may not be reasonably achievable.

“It will also be extremely difficult to assess the impacts of the enhanced health and safety measures, quarantine restrictions and social distancing protocols over the life of a project. These impacts include labour, insurance, and bonding and supply chain and project sequencing considerations.”

Those contract provisions need to extend to larger projects as well, such as those executed as public-private partnerships (P3s), to ensure that penalties are not incurred for circumstances beyond anyone’s control.

user demand rather than being dictated by a set schedule.

Sandro Perruzza, CDAO chair and CEO of the Ontario Society of Professional Engineers, stressed that the transformation needs to go beyond major cities, looking to investments such as broadband networks in the North. Such an investment would lead to e-learning opportunities, giving people in remote communities the opportunity for skills training in areas of local need such as construction and water/wastewater operation and maintenance to name a few.

He also cited a concern with the implementation of innovation as part of any infrastructure stimulus program: the Canadian talent gap.

“(We’ve been) hearing from procurement agencies (IO, Metrolinx, and the TTC, to name a few) that they have concerns around the ability to build the infrastructure they need that incorporates the technology they want to adopt,” said Perruzza. “We are asking the Canadian Engineering Accreditation Board to modify the accreditation program to an outputs-based model, which will allow the University Engineering Programs the flexibility to quickly adapt their programs to meet the design needs and quickly close the gap.”

The ability to innovative both the execution of construction services and the design of infrastructure to meet future demands will be key to the successful implementation of the stimulus funding program.

A pandemic-proof investment

With this stimulus must also come

“We need to talk to all governments but, as well for all of the big projects, Metrolinx and Infrastructure Ontario, in terms of contract terms,” said Manahan. “If it does take longer to deliver a project, then P3s are typically looking at a tight timeframe and there are going to be penalties if you don’t finish at a certain stage date. We have to have a lot more flexibility and recognition that we are in very uncertain times, and that we can’t do business as usual.”

The 2020 solution

None of the concerns in regards to the execution of infrastructure stimulus funding is insurmountable. Challenging yes, but not something that can be overcome with thoughtful execution of an effective program.

The Government of Ontario needs to identify its priorities for investment, and determine how this will work with incoming stimulus dollars from the federal government. From there, looking beyond the short-term benefit will be vital. How can these investments, using existing design and technological innovations, be built to ensure that it has a positive, multi-generational impact on the community?

Doing so will ensure that the infrastructure stimulus can have a transformative impact, both on the economies of the communities it serves and the industry itself.

Politics


Investments in digital infrastructure has the ability to transform communities, as well as help future proof assets so they can continue to meet public needs for decades to come.



needs to be potentially breached to be given consideration here.

This is an inexact science, but based on the ongoing research we have done, we are confident in the information that we are providing here. Even after the havoc of the COVID-19 pandemic, we believe these projects remain significant priorities for community and government investment.

OntarioIn the case of our Top100 Projects report, we would take a west-to-east look at the projects, or perhaps an east-to-west perspective. But in this case, we’ll start with Ontario. And there is a very good reason for that.

The Infrastructure Ontario pipeline is, arguably, the most stable list of government-priority projects in the country. Because, even when taking into consideration the current political party currently in power, it would be hard to argue why any project would be removed from the list should a change in government occur.

By my count, there were 15 projects in active procurement that: a) were not part of the scope of a project already listed on our Top100 Projects report; and b) have the potential to break the $350 million threshold previously mentioned. All of these

There is no shortage of infrastructure megaprojects that are on the government’s radar, ones that make

sense for the community they serve but are yet to find themselves high enough on the priority list to gain the funding necessary to begin the procurement process.

Some of these are not destined to get built. Any one of political interference, heightened environmental risk, poor economic return, or lack of community support could stop these projects dead in their tracks.

But then there are the projects that are not a matter of if, but when. These projects have government support, business cases have been proven, environmental risk has been offset, and community need has trumped those who speak out against them.

These are the projects that we will focus on here, looking to appreciate what will come next.

By no means are these the very next projects that will find their way onto our annual Top100 Projects report. However, should the capital construction cost or P3 cost break the minimum barrier for entry, we believe that each of these projects have enough bi-partisan support to find themselves on our list in the years ahead.

For the sake of this report, we are going to use $350 million as the threshold that

are priority transit and social infrastructure projects that seem highly unlikely to be removed as priorities:

• Ontario Line, Line 1 North Extension, and Line 2 East Extension transit projects;

• New health care facilities in Kingston, Toronto, Niagara Falls, Mississauga, Ottawa, North York, Brampton, Hamilton, and Windsor;

• CAMH Phase 1D redevelopment in Toronto;

• A new correctional facility in Thunder Bay; and

• The QEW Credit River Bridge in Toronto.

In addition, the Hotel Dieu Shaver, Line 4 Subway Extension, and Garden City Skyway projects, currently listed in the ‘Projects in Planning’ in the Market Update, could breach the financial threshold and aren’t likely to be less of a priority for a different political party.

There are few projects beyond the pipeline report that we would consider a lock to be built, but there are some that must be included in this list.

The most obvious is the rehabilitation of the Supreme Court of Canada, scheduled to undergo a $1 billion facelift starting in 2023. This project has been on the books for a few

The next wave of megaprojects to be built across Canada. By Andrew Macklin

Megaprojects

MEGAPROJECT PIPELINE



Credit: St. Paul’s Foundation

report, some of which have dedicated funds attached and others that are moving along in the planning stages.

In the health care sector, many of the projects focus on construction of additional units, or expansion projects, however there is one project that stands out as having the likelihood of reaching megaproject status. The Vandreuil-Solanges hospital, which is expected to start construction in 2022, is estimated at a capital cost of around $1.5 billion. The site for the new hospital, near Highway 30 and 40, was purchased in November 2019.

Several transportation projects are expected to be part of the megaproject landscape, as investments focus on bridge and tunnel replacement and repair throughout Quebec. Those projects include the repair of the Ville-Marie and Viger tunnels in Montreal, repair of the Louis-Hippolyte-La Fontaine tunnel between Montreal and Longueuil, reconstruction of the Honoré-Mercier bridge between Montreal and Kanhawake, and the reconstruction of the Ile-aux-Tortes bridge between Vandreuil-Dorion and Senneville, as well as the construction of a new tunnel between Quebec City and Lévis. There are also 18 additional transportation projects in study carrying an estimated final construction cost of just over $15 billion.

The biggest project in the transit pipeline is a new transit system in Quebec City. Unveiled in 2018, early works for the Quebec

years now, and all indications show that the procurement timeline and expectations for the start of construction are relatively unchanged.

We would also add a few more that were 100 per cent obvious to us before the pandemic hit, but we still believe will be priorities when Canada begins the new normal. The first is an expansion of Pearson International Airport. The growth patterns demonstrated the obvious need for expansion leading into March 2020, and while the timeline may be delayed, we are of the opinion that this project will remain vital once Canada’s airline industry recovers. The same can be said for the expansion of transit in Waterloo Region, and in particular, Phase 2 of the ION LRT. It may not be the immediate priority that emerges post-COVID-19, but it remains an important expansion of the regional transit system moving forward.

QuebecThe other province in Canada that seems to have established a politically-predictable project pipeline is Quebec, which has established its 10-year infrastructure investment plan and Premier Francois Legault and his team have filled it with priorities that are likely to withstand a change in power should one come about. There is a strong mix of transit, transportation, health care, and social service projects throughout the

City transit project are underway, and the most recent timeline had the system set to be in place in late 2026. The original cost of the project was estimated at $2.9 billion.

With a solid group of projects in the planning stages, nearing the start of procurement, Quebec will continue to be a key contributor to Canada’s megaproject landscape.

British ColumbiaThe province’s megaprojects pipeline focuses on three key priorities: expanding health care, continuing to strengthen transit, and resolving one of the province’s most divisive transportation issues.

The expansion of the province’s health care assets has been a notable focus of the current government. We have seen several hospital megaprojects begin construction in the past few years, and there are a few more set to follow, with the Burnaby Hospital Redevelopment Project, the Lions Gate Hospital Redevelopment Project, and Royal Columbian Hospital Redevelopment Phase II and III moving through the procurement process.

For transit, we know the commitments being made for the Broadway Subway Extension and the Surrey Langley SkyTrain Project. Additional funding is still being sought from the federal government to extend the Surrey-Langley project to the full length of the originally-proposed Surrey LRT, which could add to the scope of that project. While there

Megaprojects

Early works are already

underway on the Supreme

Court of Canada rehabilitation

project, which carries an estimated

overall project cost of

$1 billion.

An artist’s rendering of the new St. Paul’s Hospital to be built in downtown Vancouver.

The Mactaquac Generating Station refurbishment is likely to be Atlantic Canada’s next infrastructure megaprojects.

Credit: N

B Power



Megaprojects

and entertainment centre, announced in July 2019 to carry a price tag of $565 million, will continue to move forward as planned. But based on the changes made to infrastructure funding priorities by the current Alberta government, we’re not committing to listing any other public sector megaprojects as definitely going ahead at this time.

In Saskatchewan, two proponents have been chosen to provide proposals for the new power station in Moose Jaw. SaskPower has described the project as being of similar size and scope to the Chinook Power Station, which did make our Top100 Projects list when it was under construction. Ground is expected to be broken in early 2021 in Moose Jaw.

At this point, there are no projects in Manitoba that fit our criteria for inclusion in this article. None of the proposed megaprojects in the province currently have the necessary funding commitments to be included here.

Atlantic CanadaMost of the megaproject proposals currently under development in Atlantic Canada are just that: proposals. Whether it’s the Atlantic Subsea Tunnel or a new football stadium in Halifax, most of the larger infrastructure projects in the region aren’t quite a sure thing.

There is one however, that needs to be included in the list: the rehabilitation of the Mactaquac Generating Station. It’s a close call, as there isn’t a ton of information on the specifics of the project just yet. But the need for clean energy in the province isn’t going to change, and Mactaquac is a key asset for NB Power. Even with first construction activity not likely to get underway until, at least, 2024, it seems imminent that this large-scale energy project will one day grace the pages of the Top100 Projects report.

are lots of other tweaks to the system that will be addressed, the only other item likely to reach megaproject status will involve vehicle acquisition, with TransLink committed to purchasing 203 new SkyTrain cars.

We should also see a conclusion to the George Massey Tunnel Replacement saga, with the current government in the planning stages for a new eight-lane tunnel, approved by Metro Vancouver’s board of directors late last year. There are several other transportation projects that could reach megaproject status, depending on design and procurement, including the Highway 16 corridor project, the Okanagan second crossing, and the Okanagan Valley corridor.

One last project worth consideration is the 20-year expansion plan for the Vancouver International Airport. The current $1.7-billion upgrade project is set for completion in 2022. However, the 20-year plan calls for $9.1-billion in overall upgrades, assuming the airport keeps pace with expansion that would see it reach passenger volumes of around 31 million within the next few years. The COVID-19 pandemic has put a damper on the airline industry, so this expansion plan may be delayed a few years, but would very likely move forward as planned once air travel returns to early 2020 volumes.

Alberta and the PrairiesAll three provinces have seen a steep increase in their infrastructure investments in the wake of the COVID-19 pandemic, but it’s not likely that this will have a significant impact on megaprojects development.

In Alberta, we know that the government is committed to the construction of a new south Edmonton hospital. In Calgary, there is no indication that the new public sports

Northern CanadaNone of the significant infrastructure projects in the North are imminent at this point, but there are five that are in the early stages of planning with the hopes of gaining the necessary federal funding to move forward: Kivalliq Hydro-Fibre Link, the Gray’s Bay Road and Port Project, Taltson Hydroelectricity Expansion Project, Mackenzie Valley Highway Project, and the Slave Geological Province Corridor Project.

Energy on holdIt’s very difficult to access information about forthcoming energy megaprojects, especially in regards to hydroelectricity, but there should be some joining our list in the coming years.

One of the biggest issues holding up the sector is the federal government. Without a commitment to the electrification of the Canadian economy, the size and scale of a given refurbishment is in limbo. Do you make the investment now knowing that, in the next few years, the federal government may make the commitment and cause a surge in demand for clean energy production? It’s a difficulty that is likely hanging up a few refurbishments across Canada.

And politics could play a big role in the future of large-scale renewable projects. Some are still happening in regions still using large amounts of natural gas and coal (like the Travers Solar Project in Alberta), but how many more gain traction, at the megaproject scale, is still very much in question.

While this doesn’t provide an exhaustive list of the megaprojects that will dot the Canadian landscape in the coming, it does capture the projects that are imminent, and likely to survive the turmoil of the post-COVID-19 economic recovery and the potential changes in local, provincial, and federal leadership.


Credit: M

etrolinx

The map of the Toronto transit

landscape once the pipeline of megaprojects,

including the Ontario Line, is complete.

What megaprojects do you think are destined to be built in the coming years?

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A new report prepared for the Residential and Civil Construction Alliance of Ontario (RCCAO) indicates that the economic toll on the province will be heavy and job losses staggering unless governments work together to continue making infrastructure investments.

At this critical juncture during the COVID-19 pandemic, the report warns that holding back on infrastructure investments in Ontario could exacerbate the effects of the crisis and hamper the economic recovery of the province.

“The federal and provincial governments need to make strategic infrastructure investments, including funding for state-of-good-repair projects to ensure that municipalities keep building during and after this pandemic,” said RCCAO executive director Andy Manahan. “Any effort to rein in

infrastructure spending would have devastating economic consequences on Ontario citizens and businesses.”

The analysis concludes that the federal, provincial and municipal governments must work collaboratively to ensure investments in infrastructure are in place to facilitate economic recovery and foster long-term growth.

The report, titled Navigating the COVID-19 Socio-economic Shock: How Infrastructure Investments Will Facilitate Future Growth in Ontario, looks at two contrasting scenarios for the next 10 and 30 years that are based on different investment levels. The scenarios result in job and federal and provincial tax revenue numbers that are dramatically different.

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REPORT WARNS AGAINST PULL-BACK ON INFRASTRUCTURE INVESTMENTS

This report and more can be found at rccao.com

Figure 1: Net Present Value of Revenues from Investment Less Costs

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LEGEND:

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Preferred Scenario – Ontario

LEGEND:

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and bumps and it gets slippery. Sometimes our trucks can only go five to ten kilometres an hour,” said Jacques Sirois, the president of Lévio Transport in Saint-Appolinaire. The conditions have caused damage to his trucks that include engine and transmission failures, differential and brake damage.

“Safety investments have been called for on Route 389, which links Baie-Comeau to Labrador, for a long time, so any improvement is seen positively by the industry, given the absence of an alternative route. Given the strong presence of mining companies, a lot of freight transportation by truck goes through this place,” commented the Quebec Trucking Association when asked about the importance of the upgrades to the trucking industry.

The latest Route 389 improvement budget, announced in 2019, is for $468-million, with the federal government, the Société du Plan Nord, and Quebec’s Ministry of Transport contributing $183 million, $190 million, and $95 million, respectively.

The Ministry outlined the project’s benefits: “Improve access to resources in Northern Quebec, increase user safety and

Opening up Northern Quebec and removing a TransCanada Highway bottleneck are the goals of two

ongoing improvement projects. About 440 kilometres east of Quebec City,

on the North Shore of the St. Lawrence River, is the town of Baie-Comeau. Hanging a left onto Route 389, drivers embark on a 566-km journey north to Fermont and the beginning of Route 500 to Labrador City, Churchill Falls, Happy Valley-Goose Bay, and far beyond to where Labrador and the northern tip of Newfoundland are at their closest point.

Route 389 is said by some to be the most dangerous highway in Canada. One joke goes that the road is so twisty that you can see your own taillights. Improving it is part of Quebec’s Plan Nord, introduced in 2011 and publicized as a 25-year, $80 billion marathon to open up for economic improvement and development a 1.2 million square-kilometere territory stretching from the 49th parallel just north of Lac Saint-Jean to just beyond the 62nd parallel at the northern tip of Quebec on the Hudson Strait.

“The road is terrible. There are potholes

comfort by significantly improving the geometry of the road, improve circulation, in particular by adding passing zones, and reduce travel time by the road users.”

The current work plan is divided into five independent projects that include clearing forests, road straightening, major repairs, fixing tight curves, and resurfacing. For example, Chicoutimi-based Groupe Alfred Boivin began improvement work on a 22-km stretch between Baie-Comeau and Manac-2 this March that will last four years. A stretch of new road north of Manic-5, began in 2019, will be completed in 2021.

Planning for a new, 58-km section of road between Fire Lake and Fermont are underway. “The preparation of the final plans and specifications as well as the business case are underway. The Ministry may proceed with deforestation and then start construction,” says Transports Quebec.

Route 185/A85

The Canadian economy eagerly awaits the twinning of the last 40 km (some say 41 km) of Route 185/A85 between Rivière du Loup and the New Brunswick border.

An update on Quebec’s Route 389 and Route 185 improvement projects.By Carroll McCormick

The look of progresses this March on twinning a section of Route 185 in Saint-Antonin.

Transportation

TRADE CORRIDORS

Credit: M

inistère des Transports du Québec



Credit: C

arroll McC

ormick

While an increase in LCV traffic is implied in Dr. Fellows’ model, it applies to all truck transportation; recent figures from Transports Quebec put truck traffic at between 22 and 29 per cent of the 6,600 to 8,000 vehicles that travel Route 185 daily.

At an estimate of a 1.5 percent gain in GDP, the twinning would be worth a billion dollars a year to Canada. At an estimate of 2.5 per cent, the annual GDP increase would be $1.7 billion. New Brunswick has the most to gain in this range: an estimated $349

million to $596 million a year. Nova Scotia comes second, with estimated gains between $327 and $557 million a year.

The $553 million of federal and provincial dollars required to complete the twinning have been budgeted and the remaining twinning work is in various stages of construction.

Accelerating the tempo of construction

Once finished, in 2025, the A85 (“A” being Quebec’s designation for twinned highways) will complete an unbroken ribbon of divided highway from Halifax to Toronto.

Removing this single-lane bottleneck will reduce the cost of transportation and increase the country’s Gross Domestic Product (GDP) by as much as two billion a year, according to modelling work performed in 2018 by Dr. Kent Fellows of The School of Public Policy at the University of Calgary, working with Dr. Herb Emery at the University of New Brunswick, Atlantic Institute for Policy Research.

“I pursued the evaluation of twinning highway 185 after Jean-Marc Picard, executive director of Atlantic Provinces Trucking Association, proposed that project as a high return infrastructure investment for our region at a 2016 Roundtable on Infrastructure for the Atlantic Growth Strategy,” said Dr. Emery.

Dr. Fellows’ economic modeling work includes valuing the Confederation Bridge for the PEI economy. For Route 185 his task was to estimate the GDP gain attributable to the percentage reduction in the cost of, and increase in demand for, tradeable goods. “As a bit of an oversimplification [...] when you lower the cost of something (like truck transportation) there is more demand for it and by extension a higher volume,” Dr. Fellows said.

Quebec began twinning Route 185, with its 90 km/h speed limit, in 2002. Yet 18 years later nearly half of it remains untwinned.

Not only is Route 185 slow, it is forbidden to take long combination vehicles (LCV) on single-lane highways. These rigs—one tractor pulling two 53-foot trailers—can cost as much as 35 per cent less to operate than a single tractor-trailer. Trucking companies have to decouple their LCVs before the single-lane section, haul each trailer

separately over it, and re-couple on the other side. Other carriers find this exercise too unattractive and are thus denied, as are shippers, the benefits of LCVs.

Picard said of a twinned A85, “It would change the landscape of the industry [because of the LCV issue]. It would improve efficiency, help the environment and help with the driver shortage.”

has become rather of a cause célèbre in New Brunswick business circles and beyond; e.g., in 2018 the Canadian Chamber of Commerce approved a resolution to call on the federal government to speed up the work.

“The New Brunswick Business Council and the Atlantic Provinces Trucking Association are still pushing hard for this,” Picard said. “It is a hot topic because we see it as a trade barrier.”

Yet while Transports Quebec says that the Ministry is cognizant that users eagerly await its completion, it explains that the project’s complexities mean the work can proceed only so fast.

And might that $553 million succumb to COVID-19 as Quebec and Ottawa spend massively to compensate for the economic calamity that is the SARS CoV-2 pandemic? “At present, it is too early to know the impact that COVID-19 will have on the budget and the work schedule for the Highway 85 project,” Transports Quebec said.

Safety investments have been called for

on Route 389, which links Baie-Comeau

to Labrador, for a long time.

Transportation

Carroll McCormick is a freelance writer based in Montreal, Quebec.

Displaced power lines as part of rerouting a section of Route 389.



successful Five Nations’ East West Tie Line and Wataynikaneyap Power projects in Northern Ontario.

2 Community infrastructure. While the large-scale projects are critical, they are overshadowed by the need for homes, drinking water and waste systems, roads, schools, health care and community centres as well as local electricity and broadband services. Imagine literally building southern communities from scratch. The opportunities are immense.

3 Equitable Indigenous partnership. This is most important. While the long distance and lack of access have slowed down development in northern communities, the main barrier has historically been the lack of involvement of local Indigenous communities as partners in planning, development, and community

Finally. It’s time to look at recovery. And as the whole of the Canadian economy looks to rebuild from the

massive hit delivered by COVID-19, there is no better time than today to look North.

After a brutal start to 2020, the conversation is shifting beyond getting through the day-to-day to how we can get our people and industries moving again.

And as we get moving toward a new sense of normal, there are three key areas to focus our attention on if we plan to fast track the recovery:

1 The North and Arctic. What better way to drive economic recovery than the one trillion dollars of infrastructure opportunity waiting in the far North? Regional infrastructure often grabs attention – mines, ports for northern shipping lane access, or transmission like the very

building, and the necessary internal and connecting infrastructure.

To step back a bit, one of the last points of normalcy for Enterprise Canada, the national strategic communications firm that I lead, was on March 2. And it seems like an eternity ago.

The pandemic was on the horizon, but not yet impacting life as we knew it in North America.

The Prospectors and Developers Association of Canada’s 2020 conference was in full swing. The Prime Minister stopped by. The Ontario government announced progress on an access road to the Ring of Fire in partnership with Marten Falls and Webequie. And we made an announcement with Matawa First Nations.

The nine member communities—including Marten Falls and Webequie—

Infrastructure investments could lead to future economic prosperity.By Barbara Fox

Partnerships



And so, throughout the lock-down, our work continued.

From Toronto, Winnipeg, Edmonton, and Vancouver, from Thunder Bay and far beyond across the North, Enterprise continued to facilitate the project planning with each of our alliance partners and the leadership of various Indigenous communities. Getting shovel ready from living rooms and home offices with a model that we refer to as a “PPCP”—a public-private-community partnership for people-focused, sustainable development.

As early as April, word was swirling that federal cabinet ministers not directly involved COVID-19 response had been called to address post-recovery stimulus. From the Diefenbaker era of Roads to Resources to Pearson’s Building our North, it’s no secret that the quick spurring of infrastructure spending has been a tried and trusted recovery measure in times of economic strife.

While so much of this current crisis is new and uncharted, that much is still true.

And while the root cause of this economic disaster is different, the best national case

study for recovery continues to be Canada’s actions following the Great Recession of 2008.

Then-Prime Minister Stephen Harper announced the Economic Action Plan, a $61 billion package of federal stimulus and provincial spending—a small amount relative to what we expect to see for post-COVID recovery. That Plan outlined five focus areas to spur Canada back to fiscal health.

This included measures to strengthen the financial system and to stimulate spending among the Canadian public to address the needs of that situation, as well as short-term support for businesses and communities. More than $7 billion was committed to stimulate housing construction with a massive influx of infrastructure funding to the tune of $12 billion.

That infrastructure bill covered construction and repair to roads, bridges and harbours and increased broadband infrastructure nationally. Basic, foundational infrastructure development that could be conducted quickly to spur the economy and put money back into the pockets of Canadians and the financial system as a whole.

While much can be done in fixing potholes, mending bridges, improving highway

with their Chiefs and Councils had agreed to pursue and direct major community infrastructure projects on their lands, preparing themselves to be active partners and leaders in the massive economic opportunity headed for northern Ontario in the coming decades.

We at Enterprise, along with PCL Constructors, Ontario Power Generation and EPCOR Utilities, had the privilege of taking part as the “major Canadian companies” noted at the time.

Then COVID-19 put the world on pause. I am often asked what a strategic

communications firm is doing in the infrastructure space. It’s a fair question. To put it simply, communications at its core is about relationships. It’s about building trust and understanding people—their wants and wishes, their concerns, and addressing those emotional drivers to create solutions.

Over the last number of years, I have watched project planning across the country ramp up only to stall or fizzle out completely after opposition from local communities over the intended use of their traditional lands.

Many companies have not adapted their approach to understand the concerns and nuances of working with Indigenous Peoples. They do not have the relationships at the local-level, and in many cases, their approaches have been transactional without the meaningful partnership required to bring the community along with the success of the project.

On the other hand, many First Nations and other Indigenous communities are looking to address long-standing community issues through development, but don’t have a clear “in” with the corporations that could deliver help.

That’s where Enterprise comes in. By using our relationships with Indigenous communities and leaders, corporate Canada and government of all levels, we are in a prime position to bring people together. We identify like-minded partnerships that can see projects come to fruition, successfully.

Indigenous owned and led projects that bring direct benefits to local communities. That is the guiding philosophy of our development practice. Indeed, it is the future of Canada’s infrastructure and resource development sector.

networks, even building out transit systems down south, the development opportunity across northern Canada holds a mass of opportunity for infrastructure—and the jobs across the nation that come with it.

Here in 2020, there are roads, homes, schools, electricity, hospitals—the very basics of the foundation for whole communities—that have been waiting for decades for shovels to hit the ground. There are more than 60 communities across Canada under long-term boil-water advisories that could benefit from water utility infrastructure. This development won’t just make lives better. It can save them.

Even the excitement around the Ring of Fire cannot become reality without the necessary investment in not just roads, but mining camps, electricity transmission, water and waste-water facilities and operational needs for a regional population that’s predicted by some to boom to the size of a city. And before all of that, it will need local partnerships.

Many of the major infrastructure opportunities left in our country are in or around Indigenous communities, far in northern Canada. Not only that, there’s a lot more to come.

Guggenheim Partners have projected that more than USD$1 trillion in infrastructure is headed to the Arctic region by 2040 as warmer waters and receding ice coverage open up a Northern sea route for global trade. That’s roads, rails, ports, electricity infrastructure, and community building.

As we navigate this recovery and move back to a period of prosperity, any Canadian company that hopes to take part in this Northern Boom without meaningful and real Indigenous partnerships can attempt to try at the expense of their own balance sheet.

It’s no small feat, to be sure. The massive scope of these projects will need the leadership of the communities on the ground, and the strategic, technical planning and expertise of the kinds of private-sector companies that can get it done—not as owners, but as partners.

In a time when we, as a country, need to move money on a scale larger than ever before, we owe it to Indigenous communities across Canada to meaningfully share in the rebuild, for the benefit of all of us. The whole of the Canadian economy will be lucky for their partnership.

Barbara Fox is the chief executive officer of Enterprise.

What better way to drive economic recovery

than the one trillion dollars of infrastructure

opportunity waiting in the far North?

Partnerships



Credit: BC

Hydro

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At the End of the TunnelThe view from inside one of the massive diversion tunnels constructed as part of the Site C Clean Energy Project in B.C.. — Staff

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force majeure relief due to the coronavirus will depend on the claiming party: (a) establishing that the coronavirus outbreak falls within the contractual definition of force majeure; and (b) complying with all contractual notice obligations and taking commercially reasonable efforts to mitigate the impact of the force majeure event. To date, there have been several P3 projects in Canada and the United States that have filed notices and change orders relating to a possible force majeure as a direct result of the coronavirus outbreak, citing, in some cases, possible impacts on critical-path activities, delay costs, and delay interest, among others. Generally speaking, the coronavirus outbreak is more likely to fall within the contractual definition of force majeure if the agreement explicitly identifies pandemic, epidemic, quarantine, or possibly government intervention as the result of the foregoing falling within the scope of the events triggering a force majeure event. Where an agreement does not include such language, a claiming party may also look to establish force majeure by relying on an open-ended, catch-all category of events, such as those beyond a party’s reasonable control. We should note that in

This commentary examines the impact of the coronavirus disease (COVID-19) outbreak on public-

private partnerships (P3s) and the force majeure provisions under the P3 framework in Canada that mitigate the potential for project delays and failure by private-sector counterparties to adequately meet contractual obligations, leading to possible project default or termination.

This examination covers availability-based projects that DBRS would rate under the typical P3 framework whereby a project company (ProjectCo) passes down its construction, operations, maintenance, and rehabilitation responsibilities under a project agreement (PA) to a construction contractor and a service provider by way of a construction contract and a service contract, respectively.

Defining the clause

A force majeure clause allows parties to a contract to be temporarily relieved of some or all of their contractual obligations upon the occurrence of an event outside the reasonable control of a party and that prevents that party from performing its obligations under a contract. A party’s ability to obtain

such a case, the outcome may be less certain because the legal interpretation of such clauses will vary by jurisdiction and is open to the interpretation of both contractual parties. Also, force majeure clauses are typically construed narrowly, particularly in circumstances where the claiming party did not take sufficient reasonable actions to mitigate the impact of the force majeure event. Further, any ambiguity in the provision is expected to be resolved against the claiming party.

Examples of jurisdictional force majeure provisions

Ontario and Québec In Ontario, the contractual definition of force majeure in the PA typically prescribes triggering events as events that are not foreseeable at the time the contract was executed such as acts of war, terrorism, biological contamination resulting from such acts of war or terrorism, etc. In the absence of pandemic being clearly referenced in the force majeure provisions, a claiming party might seek relief under the Canadian common law doctrine of frustration. Under this common law principle, the claiming party is required to establish, among other

Credit protection in availability-based P3s during the coronavirus pandemic.By Eme Housser and Suneil Ramesh

The coronavirus outbreak is more likely to fall within the contractual definition of force majeure if the agreement explicitly identifies pandemic, epidemic, quarantine, or possibly government intervention.

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SAFEGUARDING P3S


http://www.exp.com


http://www.exp.com

Alberta In Alberta-law-governed PAs, the definition of force majeure more widely contains a specific reference to an epidemic or quarantine restriction that prevents, delays, or interrupts the performance of any obligation under the agreement. If a force majeure event is established during the construction period, the claiming party can be relieved from any liability or consequence under the PA arising from its inability to perform that obligation in a timely manner. If the force majeure event causes a delay in the design and construction for a prescribed period of time, then the target operations phase commencement date and longstop date may be adjusted commensurately by the period of the delay. If operations phase commencement is delayed beyond the original target operations phase commencement date, then the authority will, upon operations phase commencement, pay to ProjectCo its direct losses resulting from the operations phase commencement being delayed by the force majeure event. Either party may terminate the PA during construction if the force majeure event

things, that the supervening event was unforeseeable and radically different from that which the original contract provided.

In Ontario and Québec PAs, the coronavirus outbreak may qualify as an excusing cause, providing relief to contracting parties during the operations phase (after substantial completion of the construction phase). These clauses are common in PAs within the health sector (such as hospitals). An excusing cause can include medical contamination that could not have been prevented despite following good industry standards. Depending on the circumstances, ProjectCo may be relieved of its duty to perform any obligations under the agreement for the duration of, and to the extent prevented by, such excusing cause. The payment mechanism is operated as though availability, quality, or service failure resulting from the interference had not occurred so that ProjectCo is entitled to payment under the PA as if there had been no such interference with the services. However, as the excusing cause does not expressly include references to pandemic or epidemic, the ability to rely on the clause will be highly fact specific and may not be consistent or predictable in any given scenario.

causes ProjectCo to be unable to perform all or a material part of the design and construction for a period that persists or is highly likely to persist for 120 days during one or more construction seasons. If a force majeure event is established during the operations phase, the claiming party may be relieved from any liability or consequence under the PA arising from its inability to perform that obligation in a timely manner. Payment deductions and the accrual of failure points are suspended during this period and are not applicable. Either party may terminate the PA during the operations phase if the force majeure event causes ProjectCo to be unable to perform all or a material part of its obligations for a period that persists or is highly likely to persist in excess of at least 180 days. Upon termination of the PA, the public counterparty authority will pay the senior debt amount plus a make-whole amount, which is an allowable prepayment, not an event of default. If the delay caused by the outbreak is fewer than 180 days, the debt service reserve account would be available, but nonetheless, the initial bond payment would not be at

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or facilities management agreement are not breached if there is a material impact on the costs or the project schedule.

Prolonged outbreak period Typically, the affected party’s right to relief for force majeure under the contract will be conditional upon the issuance of a notice by it to the other party, supported by the required evidence. The contract may additionally require the notice to state the anticipated consequences and duration of the force majeure event. Some construction contracts may include time constraints that require notice to be provided within a specified period from when the affected party first became aware of the force majeure event, the failure of which will result in a loss of entitlement to claim. The coronavirus outbreak has proven to be unique from other one-time events in its ability to spread across several different geographical regions at an unprecedented rate. Given this ability to quickly propagate globally, and even with strong containment measures in place, parties looking for relief under force majeure provisions will likely need to use the approach of issuing protective or rolling force

risk, assuming semi-annual repayments. Similarly, for projects in the operating phase, if ProjectCo is unable to perform operational obligations for more than 180 days, than either party to the PA can terminate the agreement. Upon termination, the public counterparty authority will pay the senior debt amount outstanding in addition to a make-whole amount. If operations are suspended for fewer than 180 days, the public-sector counterparty will compensate ProjectCo for the debt service costs and costs to ProjectCo of providing services limited to the monthly service availability payment.

Potential risks during the outbreak

Uncertainty regarding force majeure clauses in PAs In cases where the coronavirus outbreak cannot trigger a force majeure event under the applicable contract either because the definition does not adequately capture the impacts caused by the coronavirus outbreak or because the contractual obligations related to the force majeure event have not been met, it will be necessary to ensure that the limits of liability in the construction contract

majeure notices that consider the evolving impact that the coronavirus outbreak has upon the performance of the subject party’s obligations under the contract.

While the coronavirus pandemic was unforeseeable for those transactions entered into prior to December 2019, the P3 framework has several safeguards to protect financiers of the projects. Notwithstanding, terms within PAs will differ from jurisdiction to jurisdiction, especially as it pertains to their force majeure provisions. We are taking special note of any force majeure provisions in jurisdictions that may allow work to be suspended or terminated when certain extenuating circumstances arise.

Partnerships

Suneil Ramesh is VP infrastructure finance at DBRS Morningstar.

Eme Housser is assistant VP of legal counsel, corporates at DBRS Morningstar.


http://www.aecom.ca


Health Care

HOUSING FOR HEALTH

Infrastructure Lessons from Canada’s Coronavirus Pandemic. By Michael Fenn

term care as the accommodation of choice for the frail elderly or those suffering with severe, often multiple chronic illnesses, or those requiring palliative care.

The RCCAO report suggests that part of the solution lies in producing housing options that simultaneously reduce the volume of patients seeking admission to hospitals (and long-term care) and that provide accommodation better suited to the needs of patients ready to leave hospitals. Canada must apply the efficacy test: the right treatment, at the right time, in the right setting, by the right healthcare provider, at the lowest cost to the taxpayer.

Building ever-expanding hospitals, long-term care homes, palliative care wards in hospitals, and similar infrastructure for a whole generation of baby boomers appears fiscally unsustainable.

In response, the RCCAO report recommends building more targeted infrastructure: by offering more seniors’ housing options and, as much as possible, by treating chronic disease (including mental illness and mild dementia) in the home and the community.

Our infrastructure investments and funding policies should anticipate, facilitate, and support those right choices. It may mean re-engineering and retrofitting suburbia, from accessible mobility to rezoning and redevelopment. It will mean more

I n February, the Residential and Civil Construction Alliance of Ontario (RCCAO) published to Cure Hallway

Medicine: Building Targeted Housing for Ontario’s Seniors, a research report into the problem of overcrowding in Ontario’s hospitals. It warned that aging baby boomers could overwhelm the hospital and long-term care system without a more sophisticated infrastructure response to housing for seniors. Tragically, we recently saw a demonstration of what could happen as COVID-19 patients overwhelmed hospital ERs and ICUs from New York to Montreal. Long-term care homes were also impacted as COVID swept through them.

Even before the coronavirus crisis, our hospitals were already crowded. In normal times, many patients in ERs and/or admitted to hospital have long-term or chronic illness. After treatment, patients can be discharged—but only if they can find suitable (and safe) accommodation, where their recovery and their chronic diseases can be monitored and managed. The post-World War Two generation is healthier, wealthier, longer-living, more diverse and certainly more numerous than all the generations before them. That has implications for both health care and residential infrastructure. Unlike past generations, most Ontarians now look to government-subsidized long-

contemporary digital support in the home and in the community for diagnostics and condition-monitoring, managing prescribed therapies and social-services interventions, adhering to medication protocols and medical-appointment schedules, and with recent developments, more infrastructure to test for and to track disease.

Part of the solution to the alternate level of care (ALC) or ‘bed blocker’ issue might be building a network of step-down accommodation outside the hospital environment.

We will always need hospitals to provide complex care and surgery, and to do medical research and education. With the exception of rural and small-town Canada, however, hospitals should not find themselves the primary, front-line providers of healthcare services for patients dealing with chronic disease, minor or recurrent medical episodes, or recuperating from hospital-based medical or surgical procedures.

We will also need to fundamentally rethink our approach to long-term care, for everything from the design of those facilities and their staffing models, through to the criteria for admission and the financial support to their residents. Both hospitals and long-term care homes have long struggled with outbreaks like scabies and Norwalk virus, but the COVID-19 experience has demonstrated the bigger

To meet the health care demands of an aging population, more consideration needs to be given to the built infrastructure that can address the situation without straining the system.



contagion risks, like drug-resistant MRSA. Keeping seniors out of crowded institutional settings wherever medically appropriate should be a goal.

Making an integrated system out of Ontario’s healthcare services may mean less emphasis on hospitals, and more attention to community health facilities of various kinds, both public and private, and related social services. But it also requires housing infrastructure to facilitate this difficult transition, beginning with transitional housing and a range of residential options designed for seniors who can care for themselves. Both private-sector and public-sector involvement will be needed to make such a niche housing market viable.

For those who design, build, and finance Ontario’s (and Canada’s) infrastructure, the report asks four key questions:

1 How should provincial governments adjust their public investment focus to build more types of seniors’ accommodation, with the goal of avoiding hospital admissions, reducing the length of hospital stays, and forestalling admission to long-term care homes as long as possible?

2 What infrastructure would allow us to treat chronic disease, wherever practical and medically sound, in the home and in the community, rather than in hospitals and long-term care homes?

3 How can municipal, provincial and hospital authorities free-up suitable land assets for a range of seniors’ housing and adjust land-use planning objectives to produce that housing?

4 Are there ways that we can use our tax and pension policies to generate more seniors’ housing?

There are many sobering lessons from the pandemic, one being that COVID-19 has accelerated the need to find more creative ways to deal with 21st century accommodation needs.

Michael Fenn was a deputy minister under three Ontario Premiers and the founding CEO of a regional health authority (LHIN).

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Green Infrastructure

Resilient infrastructure supports social equity, cohesion and community.By Ryan Brain

kinds of crises increase in both severity and frequency. According to research compiled by our experts, almost 60 per cent of Canada’s core public infrastructure is owned and maintained by municipal governments. In total, $141 billion (12 per cent) out of $1.1 trillion of municipal infrastructure is in poor and very poor condition. Given that infrastructure in worse condition is more likely to fail due to extreme weather events, it is reasonable to estimate that over 12 per cent of Canada’s infrastructure is currently vulnerable to climate change impacts.

However, climate events aren’t the only significant risks we face, as the global COVID-19 pandemic quickly proved. “Black swan” crises like the COVID outbreak, which was both relatively unexpected and massively disruptive, can be mitigated in part by adaptive infrastructure like modular health-care services.

Adaptive, resilient solutions that we’ve already seen include using prefabricated modules to create isolation rooms in Montreal’s Maisonneuve-Rosemont Hospital, rapidly upgrading unused buildings

The strain on our infrastructure has intensified as climate impacts like flooding, extreme weather events,

heat waves, and wildfires coincide with other crisis events like COVID-19. Designers are creating innovative, multifunctional, and cost-effective solutions that will stand the test of time as governments at every level work to allocate limited funds.

But resilient infrastructure isn’t just about longevity or cost-effectiveness. Truly resilient infrastructure can go far beyond solving technical problems, closing social gaps as well as service gaps. Through innovative infrastructure design, we can build better to improve social equity, cohesion, and community.

Preparing for crisis events

The first thing that often comes to mind when we consider resilient infrastructure is designing to withstand extreme weather events, like flooding, heat waves, fires, and freezing. Designing well-planned and durable municipal infrastructure projects becomes more crucial every day as we see these

to provide hospital beds for homeless citizens in Boston, even turning shipping containers into negative-pressure mobile isolation rooms in Hong Kong. With prefabricated and mobile solutions, we can respond in real time to close the care gaps in underserved communities, and in areas that may be disproportionately impacted by outbreaks or crises that are difficult to map and predict ahead of time.

Closing equity gaps

This manner of thinking should not be reserved for large-scale crisis response. An adaptive design philosophy can also spark much-needed change for the many communities across Canada that are chronically underserved on the basis of regional, socio-economic, or demographic factors.

Of the 12 identified social determinants of health and well-being, the vast majority are directly tied to local infrastructure. Resilient infrastructure can be a key factor in closing these gaps, allowing access to necessities like clean water, employment and education, health care, green space, recreation and

DESIGNED FOR RESILIENCE



Micro-mobility solutions like bike shares provide a low-cost, eco-friendly

solution to allow people to move around the city.

Isolation tents provide

adaptive, resilient

infrastructure that can meet

evolving health care needs in

any part of the country.

Ryan Brain is the president and CEO at WSP Canada.


Placemaking and building community

Beyond the gaps that are visible and easily quantifiable, resilient infrastructure can also support less tangible benefits, like placemaking, belonging, and social cohesiveness. Strong transit infrastructure, for example, that is resilient again urbanization, traffic spikes, and weather issues, can reliably enhance a community’s social connectivity—

which, in turn, correlates to lower rates of depression.

Improved mental health can greatly improve the quality of life and resilience within a community. In addition, integrated and adaptive urban planning, where there is an abundance of flexible, multipurpose public space which is easy to access, can go far toward placemaking and building belonging and shared identity.

community hubs, and regular contact with social groups. The mental health, social cohesion, and economic benefits can be vast—and the solutions can be inexpensive and community-driven.

Take, for example, a cost-effective new method WSP developed for water treatment that can end boil water advisories in remote, Indigenous communities. So long as a remote community has one trained individual operating the treatment centre, they will be

A strong sense of cohesion and community is critical for resilience against crisis or change. Most of us would intuitively grasp that the relationship between social cohesion and resilience is an important one, but we don’t need to guess. Research has repeatedly found a significant positive correlation between cohesion and resilience—so it’s clear that the benefits of enhanced, adaptive infrastructure are amplified during periods of shared challenge. It’s a hallmark of good corporate citizenship to lead these positive, future-focused changes toward building a better normal. Designing infrastructure that better adapts to and outlasts change is the most essential building block of a resilient city, and it can also be an invaluable tool as we strive to build equitable, resilient communities where everyone can thrive. We have the opportunity as designers and engineers to be the leaders of that change, and there has never been a better time to start.

Designing well-planned and durable

municipal infrastructure projects

becomes more crucial every day.

able to self-sufficiently treat and circulate safe, clean water for the population. And innovative, community-minded thinking applies to large urban environments as well; Toronto, for instance, has been leveraging micro-mobility infrastructure like bike lanes and bike share networks to help connect people with a broader bubble of community (and economic opportunity) in a flexible, affordable, eco-friendly way.

Shipping container homes

create mobile housing units

that can be moved to locations of need, such as

temporary housing for workers or

emergency housing for those displaced

by a natural disaster.




early 1980s, when average insured losses were only $400 million per year for all of Canada.

There are many reasons why urban areas across Canada are seeing more flooding. Older neighbourhoods were constructed in floodplains and some regional topography shows development in low-lying areas prone to flooding, simply due to the nature of how water flows. However, three important factors are the main drivers of increased flooding in urban centres like Toronto: more precipitation as a consequence of climate change, aging and insufficient infrastructure capacity and the abundance of concrete, asphalt, and other hard surfaces. These impermeable areas prevent water from seeping into the ground as it naturally should, forcing it to flow overland into storm sewers, many of which are old and have limited capacity. To reduce these effects, introducing permeable features like plants and soil to soak up water would help protect cities from floods—like taking a step towards re-establishing the power of the forest or wetland that once stood where our cities do now. This is natural infrastructure; the use of vegetated systems to manage stormwater and restore some of the hydrological functions of natural areas.

Flooding is a critical issue facing Canadian municipalities that will only become more challenging as

we continue to experience the effects of climate change. A 2019 Council of Canadian Academies report quotes damage to physical infrastructure caused by extreme weather as Canada’s top risk and in 2019, for the first time in history, the Bank of Canada listed climate change as one of six vulnerabilities to Canada’s financial system. Considering that extreme weather, including floods, is Canada’s primary climate change risk, stormwater and flood management is an important strategy for enhancing our climate resiliency.

Urban centres like Toronto are particularly vulnerable to flooding, and with a seasonal bombardment of news headlines warning of rising flood costs and impending infrastructure damages, this seems impossible to ignore. And rightly so—the Greater Toronto Area has seen a significant increase in flooding over the past ten years, coinciding with rising average temperatures. In 2019, the Insurance Bureau of Canada reported that insured losses from severe weather in Ontario reached $1.3 billion in 2018, after exponential increases since the

Why businesses should care about flooding

The need to consider the effects of climate change, including flooding, also extends to businesses. Physical damage to assets and local infrastructure, employee physical and mental wellbeing, supply chain risks, threats to water quality, and the implementation of stormwater charges can all result in unexpected costs or disruptions to business operations, both on a local and global scale. Flooding and climate change have trickle-down consequences, from a systemic, global level to the scale of the individual employee.

Here are the potential risks to businesses as a result of climate change:

Risk of physical damage • Physical damage to a company’s

assets (office buildings, warehouses, fleets, inventory, etc.).

• Damage to public infrastructure (flooded roads, impaired bridges) disrupting transportation, goods movement and accessibility.

BUILDING THE CASECreating a business case for natural infrastructure. By Alyssa Kelly and Eric Meliton

All photos: TRCA

An example of natural infrastructure installed to reduce urban flooding on commercial land.Right: This map highlights the pervious surface areas within the Pearson Eco-Business Zone.

Natural infrastructure placed in a parking lot to assist with bioretention and reduce stormwater impacts.



For more information, contact Nick Krukowski

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• The impacts of combined sewer overflows (CSOs).

• When intense rainfall overloads the capacity of combined sewers, this mix of raw sewage and contaminated stormwater is diverted past treatment facilities, directly into surrounding rivers and lakes.

Natural infrastructure as a solution

Natural infrastructure is a valuable method of reducing stormwater runoff and lowering flood risk. It’s a strategy that incorporates natural land features in development and reintroduces these features into urban areas to allow water to infiltrate into the ground rather than run into storm sewers. Natural infrastructure can range from conserving features like wetlands to implementing permeable pavements to allow water to soak into the ground.

The types of natural infrastructure vary from naturally occurring landscapes to more engineered technology, which can include: wetlands; urban forests; grasslands; gardens and native landscaping (rain gardens, urban agriculture

Employee wellbeing• Employee productivity decreases as a

result of mental health concerns around residential flooding. A 2013 study by the Conference Board of Canada found that absenteeism cost the Canadian economy $16.6 billion in 2012.

• Nineteen per cent of the national population live in an area that is at risk of flooding.

Stormwater chargesFinancial costs from government implementing stormwater fees.

Risks to the supply chainRaw material availability, quality, and changes in cost, as well as labour issues and shipping/delivery disruptions.

Threats to water quality• Contamination implications from urban

flooding can affect process water sources used in manufacturing.

• Heavy metals, bacteria, chloride from road salt, oil and grease are commonly found in rivers and lakes near urbanized areas from sources such as tire wear, industrial spills, or pavement deterioration.

containing native species); mangrove forest restoration (coastal regions); green roofs; blue roofs; bioswales; bioretention areas; soakaways; riparian buffers; permeable pavements; and rainwater harvesting vessels.

The opportunity

The public sector has been active in promoting natural infrastructure on public lands, but even so, a large percentage of the land in a given municipality is privately owned. The prevalence of private land, particularly industrial and commercially owned, has led experts in the field to stress the importance of private sector involvement in natural infrastructure propagation; however, this has generally been difficult to achieve. A lack of understanding in the business sector as to the causes of urban flooding, and minimal awareness of natural infrastructure as a solution, have, up until now, been limiting factors on the predominance of natural infrastructure on corporate lands.

The private sector is, therefore, a key stakeholder in addressing the issue of flooding and climate vulnerability in urban areas, and despite its lack of prevalence, there are a host of benefits businesses can reap from on-site



http://www.cnam.ca


resiliency, and has supported multiple successful implementations of natural infrastructure projects on corporate properties, mitigating the permeable surfaces in the Pearson Eco-Business Zone.

PPG’s position as a liaison between the conservation community and the private sector presents a unique opportunity to provide information for businesses on flooding issues in the GTA, on the multiple benefits of natural infrastructure, and to support the business case for companies to act. This will improve climate change resiliency not only for the participating company but the surrounding community as well. The recent publication of PPG’s white paper entitled: The Business Case for Natural Infrastructure: How corporations can invest in nature for climate resilience seeks to utilize this strategic position to assist businesses achieve both economic and environmental resiliency.

A well-functioning environment works as a system, with trees, soil, rivers, valleys, and peaks, each playing a role in the water cycle. A well-functioning urban water cycle must also have multiple collaborators, each playing their part. In order to address the

implementation of natural infrastructure. Not only can natural infrastructure lower flood risk and improve water runoff quality, it has been shown to provide building energy savings, increase property values, and can be used to gain municipal stormwater charge credits. From another perspective, this also presents the private sector with the opportunity to take a leadership role in creating resiliency in their communities and demonstrate corporate social responsibility to consumers, employees, and investors. In fact, climate resiliency is becoming an increasingly important metric of environmental, social, and governance (ESG) criteria used by investors to evaluate businesses.

The path toward natural infrastructure adoption

Partners in Project Green (PPG), a program of Toronto and Region Conservation Authority, is in the unique position of convening municipalities, the not-for-profit sector and the business community to identify and implement sustainability solutions.

PPG’s Water Stewardship performance area seeks to promote best practices in stormwater management and flood

issue of flooding in the GTA, the private sector must play a role in, and benefit from, the solution. Natural infrastructure is a simple way of growing businesses into attractive, marketable, and environmentally and socially responsible organizations, resilient to the effects of climate change and prepared for the future.


Alyssa Kelly is the primary author of The Business Case for Natural Infrastructure: How corporations can invest in nature for climate resilience.

Eric Meliton is a program manager of Partners in Project Green, a program of the Toronto and Region Conservation Authority.

Download the full report at partnersinprojectgreen.com/ natural-infrastructure-white-paper


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develop a framework and supporting tool to evaluate the economic, environmental/ecological, and social values of GI.

WRF has more than 30 years of experience in stormwater and pioneering research to assess green and gray infrastructure options. An upcoming WRF project, Framework and Tools for Quantifying Green Infrastructure and Linking TBL Analysis, focuses on helping communities identify stormwater management alternatives that maximize community value, compete for scarce funding, leverage private capital and alternative funding sources, and get community support and buy-in. The research team brings together a range of perspectives with case studies and practical guidance to help utility and municipal stormwater practitioners recognize the range of alternative GI program and incentive mechanisms. This green infrastructure co-benefits study incorporates innovative approaches with proven cost-benefit methodologies to develop a quantitative

Communities throughout North America are adopting green infrastructure (GI) programs to

improve water quality and maximize the value of their infrastructure investments. GI can be a cost-effective approach to meet changing water quality standards while providing other environmental, economic, and community benefits.

As more cities and municipalities are adopting GI into stormwater management or expanding existing GI efforts, utilities have expressed a need for more information to better quantify and monetize GI benefits through a triple bottom line (TBL) approach.

GI co-benefits are generally categorized as water quality and quantity, ecosystems, energy saving, climate resilience, and community benefits. Many municipalities are looking to encourage developers to go beyond minimum requirements, as well as promote the installation of GI retrofits at existing sites. The Water Research Foundation (WRF) is leading an effort to

framework and tool for evaluating co-benefits of GI at the community level.

The framework and tool will guide users through a series of questions to obtain the different information and inputs required. The user will input a city, neighborhood, or watershed-wide GI implementation scenario that includes a mix of GI best management practices that will help meet water quality goals. GI can be used with traditional gray infrastructure to reduce costs of stormwater management, and meet standards related to combined sewer overflows, polluted runoff from municipal separate storm systems, and total maximum daily load targets, while also yielding co-benefits.

The project will help users identify applicable benefit categories for their GI program alternatives based on the type of program they plan to implement, the scale of the program, and other community factors, and guide users in identifying the full lifecycle costs of their GI projects/programs.

This project was developed in response to

Quantifying and monetizing green infrastructure using the triple bottom line.By Kelsey Beveridge

Valuing Green Benefits

Calgary, the only Canadian city involved in the research, has significant need for appreciating the environmental benefits of green infrastructure after the severe flooding that has occurred in the community.



reduction projects; the framework could help address this knowledge gap by allowing users to input information where the objective is to reduce flood risk and improve drainage system. In addition to addressing flood risk reduction, the tool also allows users to monetize water quality benefits based on estimates of household willingness to pay for improved water quality in local rivers and streams.

The utility workshop and webinars identified several key considerations to

be incorporated into the framework and tool, and ultimately how to develop useful outputs and guidance. For example, utility participants reported that a key use of the tool will be to convince project managers and internal staff that GI is worth the effort and investment, as well as gain buy-in from municipal departments and public agencies. Many also agreed that the TBL tool will provide useful information to further public support at the community level and create a public demand for GI. The discussion reflected a need for a user-friendly tool that

an expressed need to help utilities conduct analyses of their GI programs and develop a systematic approach to quantify and monetize the TBL benefits. An in-person utility workshop and several webinars from 2018 to 2020, hosted by WRF and the research team, sought to obtain input from participants to help influence the development of the GI co-benefits framework and tool. Participants included utilities from across the U.S., as well as the

City of Calgary. Additionally, the workshop focused on different benefit categories that the project team proposed in the tool, which the participants / users can rank them by importance. Based on the inputs from the utility workshop, the highly ranked benefit categories included flood reduction, water quality, ecosystem benefits, public health, and green job creation.

Flood reduction was ranked very high because there is little data to show how GI reduces flood-related damages or how it defers costs associated with larger-scale flood

allows for flexibility and customization, and that helps users quantify and monetize co-benefits associated with a citywide plan. The tool can demonstrate how GI improves a utility’s bottom line and the cost-benefit analysis, and can support these projects by providing data-driven, realistic estimates of how GI projects can be impactful.

Support from the 16 participating municipalities in North America helped facilitate the use of the GI co-benefits framework and tool through a national network of utilities. The participants expressed the importance that the tool remains a “living tool” with updated data and information. Ultimately, this quantification methodology for GI co-benefits facilitates the lifecycle cost analysis of stormwater infrastructure to encourage better decision making while also supporting the needs of the surrounding community.

This article originally appeared in the March/April edition of our sister publication, Water Canada.

Kelsey Beveridge is a technical writer at the Water Research Foundation.

Many municipalities are looking to encourage developers

to go beyond minimum requirements, as well as promote

the installation of GI retrofits at existing sites.


SOCIALImproved air quality and related health benefits

• • • • •

Water supply benefits• • • • •

Enhanced aesthetics and community livability

• • • • •

Flood risk reduction• • • • •

Reduced urban heat stress and related health benefits

• • • • •

Increased recreational opportunities

• • • • •

Green job creation

FINANCIAL

Avoided infrastructure /

treatment costs

• • • • •

Asset life extension

• • • • •

Energy savings

ENVIRONMENTAL

Water quality and

associated aquatic habitat

improvements

• • • • •

Carbon emissions reduction

• • • • •

Ecosystem benefits

Framework and Tools for Quantifying Green Infrastructure Co-Benefits and Linking with Triple Bottom Line Analysis (WRF Project #4852 / SIWM4T17)



Finance

sector had deep experience in brownfields, but it was clear that they held outstanding investment possibilities if GMF could help define a pathway to their revitalization.

In doing so, we realized that budding sectors need more than funding to get off the ground. They require expert participation at every stage in the process, from feasibility studies to plans, to pilot projects and capital projects. They also need a community of practice where peers with every level of knowledge can share lessons learned and helpful tools. GMF created all of this and more in the brownfields sector, inspiring exceptional projects across the country.

The City of Port Coquitlam, B.C., for example, won FCM’s Sustainable Communities Award for brownfields in 2018 after cultivating an innovative project on a tight budget. Residents wanted more green recreational space, so the city turned a former sanitary lagoon into a public green space. It kept costs low by developing a self-remediating site instead of removing the contaminants. Residents now enjoy 1.6 kilometres of accessible trails and viewing platforms around a wetland and nature preserve. The remediated site helps manage storm runoff and reduce flooding in nearby communities and has also increased nearby residential property values.

In Edmonton, Alberta, the city took a wide approach to brownfields starting in

Few programs boast the return on investments generated by the Green Municipal Fund (GMF).

Operating under the Federation of Canadian Municipalities (FCM) since 2000 with an endowment from the Government of Canada, GMF has supported more than 1,300 sustainable municipal projects. It’s been so successful, the federal government committed nearly $1 billion to the fund in Budget 2019, bringing its total endowment to $1.6 billion. That’s an outstanding result for a fund that began with a fairly modest program 20 years ago.

In our early years, we funded a broad range of sustainability projects and raised awareness about GHG inventories, climate change plans, and sustainable neighbourhood plans. Together with municipalities and their partners, we determined which solutions worked best and narrowed our focus to areas where we had the most impact. We progressively boosted the targets we expected from funded projects, and have continued to raise those with each generation of funding offers.

Much of our current program model emerged from our early work on brownfields, a relatively new sector we helped scale up a decade and a half ago. In 2005, we received $150 million to restore former industrial sites to safe and productive use as residential, retail or community buildings, and green spaces. Neither municipalities nor the private

2010. It has received $5.8 million since then to support its green growth program—a 10-year plan to clean up and redevelop 50 contaminated former gas stations. The program first targeted these contaminated stations and later expanded to include all refuelling sites within the city. The program promotes economic growth, addresses environmental challenges, and makes the city more livable. It’s a model we hope to see replicated in other cities across Canada.

Over the years, we’ve used this successful brownfields recipe many times. In 2018–2019 alone, it enabled us to approve nearly $56.9 million in loans and grants for capital projects and more than $4.6 million in grants for plans, studies, and pilot projects in five sectors.

We’ve now established this type of programming in the energy sector—a focal point for GMF, with more than $452 million in approved spending—as well as in waste, water, transportation, and land use planning. Hundreds of municipalities across Canada have taken advantage of our offers in these areas, and have reaped the economic and environmental rewards. We’re confident that municipalities will continue to build on the results their peers have achieved through infrastructure projects such as these:

1 The City of Toronto and its partner, The Atmospheric Fund (TAF), for example, made outstanding energy efficiency investments

SHAPING THE GMFHow 20 years of groundbreaking has evolved the Green Municipal Fund.By Brock Carlton

Credit: Varennes-library

Brownfields is one area of green development where the GMF has seen significant success, turning derelict properties into valuable urban assets.

Inset: Varennes became the first municipality to attempt to build an institutional building (its new library) that produces as much energy as it uses.



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explore options for processing its commercial and residential food waste, along with yard waste and biosolids, at a single location. It plans to sell the resulting compost while also saving an estimated $27 to $42 per tonne on tipping fees, diverting up to 12,873 tonnes of organics from landfills per year, and reducing carbon dioxide emissions by up to 3,800 tonnes per year. It’s another GMF success story that other councils can build on. As Cameron Baughen, the district’s solid waste management coordinator said, “Our elected officials are able to make this large-scale decision because of the feasibility study.”

A bold future

GMF is about to have even more influence on Canadian infrastructure through two new funding streams: sustainable affordable housing and community efficiency financing. These streams will revolutionize the way municipalities and their partners build and retrofit community buildings/affordable housing and promote energy efficient investments, programming, and solutions at the property level, and will help build better lives for Canadians.

in seven social housing buildings, earning a whopping 364 per cent return on the investment. The retrofits offer 1,500 residents a higher quality of life and provide work for 12 on-site community members. They also help avoid 963 tonnes of GHG emissions per year, increase the fresh air supply by 75-100 percent and save $502,000 per year.

2 The City of Varennes, Quebec, is the first Canadian municipality to construct an institutional building that aims to produce as much energy as it consumes. By 2021, the city’s library will produce 120 000 kWh of solar energy per year and save $80,000 in energy costs per year. It’s already consuming 27 per cent less water with the installation of low-flow toilets and taps. The building is heated through a combination of solar energy and geothermal heat pumps, and any excess solar energy is sold to Hydro-Québec. We’re pleased to hear that the city plans to apply similar sustainability standards to its future municipal buildings.

3 More than 40 per cent of B.C.’s Regional District of Okanagan-Similkameen’s waste stream is made up of organics. The district used a GMF-funded feasibility study to

This type of investment can play an important role during Canada’s post-pandemic economic recovery. Municipalities are the governments closest to the places where Canadians work, raise families and run businesses. GMF is exceptionally well positioned to assess sustainable municipal projects, disburse funds and provide knowledge-based support to municipalities as they rebuild their economies. Our program can help meet municipalities’ needs in an unprecedented time, when infrastructure funding has the potential to reshape the economy and environment for the better. At GMF, we’re ready to do our part.

Brock Carlton retires from FCM at the end of July. Through his 12 years as CEO, Canada’s local order of government has seen dramatic increases in federal investment and national recognition—and FCM has become one of Canada’s most influential associations.

Brock Carlton is the chief executive officer of the Federation of Canadian Municipalities.

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BC Hydro has announced it will safely begin increasing construction activities at the Site C dam site in a phased approach in the days and months ahead.

The phased approach is based on the provincial health guidelines for industrial camps, and BC Hydro will work with project contractors and unions to begin ramping up construction activities. The first increase in work will focus on restarting some of the main civil works on the earthfill dam and roller-compacted concrete dam buttress

In response to the global COVID-19 pandemic, work at the dam site was scaled back in mid-March to focus on essential

activities and critical work required to meet river diversion later this year. This brought the overall workforce staying at camp down by about 50 per cent and helped reduce densification at the site and worker accommodation lodge.

BC Hydro worked with Northern Health to implement measures to improve health and safety at site in alignment with provincial health guidelines. This included enforcing social and physical distancing both in camp and at the work sites, enhancing cleaning procedures in the worker accommodation, closing common areas, and closely monitoring worker health while on site.

A health screening process has also been implemented for all workers accessing the site, including the B.C. Ministry of Health COVID-19 self-assessment questionnaire, along with a non-invasive temperature scan. These measures will remain in place.

BC Hydro will continue to work with Northern Health to ensure ongoing adherence to these health and safety measures while gradually increasing the number of workers staying at site through the spring and summer.

For more information about BC Hydro’s COVID-19 measures at Site C, visit sitecproject.com/COVID-19.

For additional details on this year’s Top100 report, visit top100projects.ca

Top100 Projects

Crews are doing investigative fieldwork in the Kicking Horse Canyon over the next several weeks as part of the preparation for major highway improvements to begin late this year.

Workers have begun collecting physical data in the Dart Creek area, as well as other locations near the highway alignment. This fieldwork will help to inform the ongoing engineering design of the four-laning improvements to the Trans-Canada Highway through the canyon.

Workers will practise safe physical distancing and use personal protective equipment. Every effort will be made to minimize any environmental disturbance to the local area. Minimal traffic impacts are anticipated as this work is carried out.

B.C.’s provincial health officer (PHO) has directed employers to take all necessary precautions to minimize the risks of COVID-19 transmission and illness to themselves and their employees. This includes ensuring workers maintain physical distance with a minimum of two metres (6.5 feet) apart from each other, both in the course of their duties, as well as during breaks. Anyone exhibiting COVID-19 like symptoms will be directed to self-isolate at home for at least 10 days.

A design-build contract for the fourth and final phase of the Kicking Horse Canyon Project is expected to be awarded in late summer or early fall 2020, with initial construction to begin in the fall. It will bring the last remaining 4.8 kilometres of narrow,

winding two-lane highway up to a modern four-lane, 100 km/h standard.

The project is being delivered under the Province’s Community Benefits Agreement (CBA). It prioritizes hiring local workers, Indigenous peoples, women, and other under-represented groups, and provides more training opportunities for apprentices, so they can complete their certification. The CBA ensures competitive, transparent wages with fair working conditions that foster a workplace free of discrimination and harassment and honours the cultural differences of all involved on the project.

For more information on this project, including flyover footage and a virtual reality simulation, visit kickinghorsecanyon.ca.

Fieldwork Underway for Kicking Horse Canyon Project2020 Top100 Projects Rank: 58Value: $872.7 million (includes Highway 1 upgrades)

2020 Top100 Projects Rank: 6Value: $10.7 billion

BC Hydro Gradually Ramping Up Site C Construction

Credit: Aecon


http://www.sitecproject.com/COVID-19


http://www.kickinghorsecanyon.ca


APPOINTED

Carole Saab

Carole Saab has been named the new chief executive officer of the Federation of Canadian Municipalities (FCM).

“Carole’s ability to generate success for municipalities

and FCM is evident from her record, which includes her pivotal roles in negotiating and securing historic investments in national infrastructure, municipal programming, capacity building and more,” said Bill Karsten, president of FCM.

Saab steps into the CEO job from her position as FCM’s founding executive director of its policy and public affairs division. Before joining FCM in 2010 as the manager of government and media relations and senior director of policy and government relations, she held several positions working on Parliament Hill.

Robert Hornung

The Canadian Wind Energy Association (CanWEA) and the Canadian Solar Industries Association (CanSIA), effective July 1, 2020, the members of CanSIA and CanWEA will unite within

the Canadian Renewable Energy Association under the trusted leadership of Robert Hornung, the long-standing president of CanWEA.

As the founding president and CEO of the Canadian Renewable Energy Association, Hornung will lead the member-based association in stakeholder advocacy and public engagement focused on ensuring that renewable energy and energy storage play a central role in transforming Canada’s energy mix during this period of historical global transformation.

With a corporate office in Ottawa, the association will work to create conditions for a modern energy system that makes significant and positive contributions to Canada’s economy and clean energy future. It will provide forums devoted to dialogue, collaboration, and stewardship, and growth of the industry.

served as executive managing director of the Residential Framing Contractors’ Association for eight years and as the president and CEO of De Novo Builders Inc., a general contracting company.

Réjeanne Aimey

Réjeanne Aimey has been named the new president and chair of the Ontario Society of Professional Engineers (OSPE).

Aimey, a senior technical consultant with KPMG, has been a member of the board of directors of OSPE since 2017. She had previously served a one-year term as vice-chair before taking on the new role. Before joining KPMG, Aimey had spent time working in the transportation and energy industries in Ontario.

Aimey replaces Dr. Tibor Turi as chair of the board.

Steve Small

Parsons has announced the addition of Steve Small as the company’s senior vice president of integrated del ivery business development for Canada. Small brings 33

years of experience in the management and delivery of large infrastructure projects to further advance Parsons in the Canadian market.

Prior to joining Parsons, Small led public-private partnership (P3) development across North America for a leading international infrastructure company. In his new role, he will lead integrated delivery business development for all critical infrastructure markets across Canada.

Small holds a holds a bachelor’s degree in electrical engineering from the Memorial University of Newfoundland and is a registered professional engineer in British Columbia. He is active in the infrastructure industry, holding board and committee positions with the Canadian Council for Public-Private Partnerships and Canadian Road Builders, Inc, respectively.

Alain Mercier

The Canadian Urban Transit Association (CUTA) has announced the appointment of Alain Mercier as chair of CUTA’s board of directors for a two-year term.

Mercier joined the Réseau de transport de la Capitale (RTC) as CEO in April 2012. His extensive experience in the area of transportation, both in the private and public sector at the local, national, and international levels spans 35 years. Alain has worked at the operational, commercial, strategic, and executive levels, dealing with developing transportation solutions such as rail and bus networks, implementing innovative business practices, restructuring organizations, and most recently focused on organizational governance.

Mercier became a member of CUTA’s board in 2012 and joined the executive committee in 2015. On the executive committee, he has held the positions of vice chair of technical services, vice chair of finance and, most recently, first vice chair.

Giovanni Cautillo

The Ontario General Contractors Association has announced that Giovanni Cautillo has been named its new p r e s i d e n t . C l i ve Thurston, who has been

president of the OGCA since 2001, has retired, but continue as an external consultant to the organization for the next three years.

Cautillo has over 16 years of senior management experience, most recently as executive director and chief operation officer for both the Greater Toronto Sewer and Watermain Contractors Association and the Ontario Sewer Watermain Construction Association.

In his time as executive director, Cautillo grew these respective organizations with a defined focus on promoting clean and safe drinking water and the elimination of wastewater. Prior to those roles, he

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slice of the revenue pie and a few dribbles of declining gas tax. If they’re lucky, they might get slipped 50 bucks at stimulus time. Kind of tough to grow up in that constitutional family dynamic, especially when the piggy bank is perpetually empty.

I’m not a constitutional lawyer, but there must be a better way to balance municipal autonomy with provincial and federal authority that more fairly allocates services and costs. Can our Canadian constitution be changed to give municipalities more power and financial authority over their jurisdictions? If our municipalities (aligned in provincial caucuses) had provincial powers, do we need provinces at all? Is there a better way to fund and manage our public infrastructure and the levels of service we require?

Kristin Good, a professor in the Department of Political Science at Dalhousie University, said in a recent Institute for Research on Public Policy article that: “unfettered provincial power over municipalities must be curtailed, but municipalities should not be taken outside the scope of provincial authority through an amendment to our country-wide constitution.” Enid Slack of the Institute

With the financial crisis of a generation upon us, municipalities are between a

rock and a hard place. Raising taxes now is not an option and, unlike other levels of governments, they are not legally allowed to run operating deficits beyond one year. So, to find long-term solutions to the massive budget shortfalls and declining service levels our cities and towns face, we’re going to have to have some difficult discussions beyond the coming (and necessary) wave of bailouts, deferrals, and stimulus.

Municipalities are often referred to as “creatures of the provinces”, but Canada’s 3,573 little ‘creatures’ across Canada have grown up. Local governments in Canada are doing much of the heavy lifting on the front lines in the family, but are often treated like children on a fixed transfer payment allowance. They’re expected to deliver and keep the guests happy, but with very limited tax revenue or powers and tight restrictions on debt, municipalities are often forced to go cap in hand to the provinces, who then talk to the feds. Those two argue and then either criticize or download chores on their municipal children or tease their always-working, aim-to-please-kids with a small

of Municipal Finance and Governance said in a recent Toronto Star article that, “the COVID-19 crisis has in many ways brought out the best in all our governments and shown how well they can work together. This collaboration needs to continue, particularly to alleviate the effect of the crisis on local finances.”

I think everyone agrees that governments should take a hard look at which level provides, and pays for, which public services. The three members of our constitutional family should continue to work through our short term needs today but let’s use this moment of togetherness to have a deep family discussion on how to more equitably share the income, and the chores tomorrow.

TIME FOR A FAMILY MEETING By Todd Latham

Closing Shot

Todd is the founder of this magazine and applauds the efforts by the Federation of Canadian Municipalities to get the federal government to allocate $10 billion to cover municipal budget

shortfalls, but like the 50 bucks, it’s never enough and it’s gone before you know it.

Local governments in Canada are doing much of the

heavy lifting on the front lines in the family, but are often

treated like children on a fixed transfer payment allowance.



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